Press Release: Commission investigates aid in a management contract between German Georgsmarienhütte and Gröditzer

The European Commission has opened a formal investigation procedure concerning a management service contract concluded between the German Treuhand-successor BvS, its 100% subsidiary Gröditzer Stahlwerke and steelmaker Georgsmarienhütte. The Commission doubts whether a private investor would have agreed to the payment of a holding service fee which increases 10-fold compared to the previous period and, on top of that, would have guaranteed this payment. The contracted obligations could therefore be State aid.